On Friday, stocks initially responded positively to slightly better-than-expectedU.S.jobs numbers and an unchanged unemployment rate of 8.3%. A much better consumer credit report added to the gains. But markets eroded when the International Swaps and Derivatives Association declared that the deal really a “default.”
Despite the headline on Greece, markets managed to close with slight gains and 9 of the 10 S&P sectors in the black.
At the close, the Dow Jones Industrial Average rose 14 points to 12,992, the S&P 500 gained 5 points at 1,370, and the Nasdaq added 18 points to close at 2,988. The NYSE traded 718 million shares and the Nasdaq crossed 421 million. Advancers were ahead of decliners on the Big Board by over 2-to-1 on both exchanges.
Strictly from a technical perspective, Wednesday’s reversal up, following a “gap down,” was impressive — like a rifled shot at an NHL goalie who not only makes a great save but then fires the puck back to the opponent’s goal. The gap down had all of the marks of the beginning of a serious threat to the major support zone at 2,834–2,886, as momentum turned suddenly to the bearish side. But the reversal, or rebound, is so strong that it now threatens to break through the resistance at 2,995-3,000. The bulls are back in charge.
Since the Nasdaq’s chart clearly makes the bullish case, there is no need to look at any others. Matching the 2,995 to 3,000 resistance on the Nasdaq is the S&P 500’s resistance at 1,270 to 1,378, and the Dow’s resistance at 13,000 to 13,055. Support lines are clearly shown on the charts of March 7.
On Thursday, all of the 10 S&P 500’s sectors rose, and on Friday, 9 of 10 advanced. It is this follow through a wall of economic, corporate and political worries that has turned the market up again. And so in the short-term, intermediate-term, and long-term, stocks are likely to move higher.
Today’s Trading Landscape
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.